ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, April 12, 1990                   TAG: 9004120369
SECTION: VIRGINIA                    PAGE: B5   EDITION: STATE 
SOURCE: Associated Press
DATELINE: ABINGDON                                 LENGTH: Medium


COAL-BASED GASOLINE GAINING IN COALFIELDS

The popularity of coal-powered gasoline is heading into high gear in the Virginia coalfields, with sales nearly tripling expectations and a fifth outlet opening this week, an executive said Wednesday.

But the true test of whether the public is ready to put "coalahol" in their tanks will begin next month when pumps open outside the coalfields, where miners have a natural affinity for the product, said Keith Grindstaff, Coal Technology Corp.'s vice president for finance.

Coal Technology President Richard Wolfe said eight years of extensive research went into the production of the new fuel, which contains a mixture of coal-derived liquids.

"It's not been an overnight success," Wolfe said Tuesday during the opening of the fifth coal-powered gasoline outlet, a convenience store near an Interstate 81 exit into Abingdon.

While the successful marketing of coal-based gasoline may not have occurred quickly, it definitely has taken place over the last few months, Wolfe said. "The support has been overwhelming."

CTC outlets have opened in Washington, Buchanan, Wise and Dickenson counties since the fuel went on the market in September.

Grindstaff said the company had projected sales at this point to be 50,000 gallons a week. "Right now, we're selling 137,000 gallons."

Wolfe said the product has been successful because it is cheaper and more efficient than conventional fuel. "It's a combination of the best properties of coal and oil," he said. "Instead of `gasahol' we have `coalahol.' "

Testimonials written by customers at the Big Stone Gap outlet include one from Melissa Hurt, who said her car "doesn't knock anymore," and another from Charles Moore, who said his car "runs smoother. I use it in both of my cars now."

"Receives better mileage and the valves have quieted down," wrote Grady Woods.

Grindstaff said, "The fear of a new product has been overcome. The coal miners are behind it 100 percent."

He said the company plans to open an outlet in eastern Tennessee outside the coalfields next month. "That will indicate if we're ready for a wider market. We'll see if they're ready for this new concept of gasoline."

Meantime, the corporation plans to construct a $500,000 outlet on Virginia 19 in Hansonville, a Russell County locality that Wolfe called "the gateway to the coalfields." That outlet will be the first one CTC has built from the ground up, he said.

The corporation also announced plans Tuesday to spend $1.7 million to expand its liquid coal processing facility in the Old Airport Road Industrial Park in Bristol.

The facility, scheduled to be completed in August, will house the first pilot plant production line to provide for the continuous processing of coal into its liquid coal derivatives and into a formed coke, Wolfe said.



 by CNB